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International developed stocks gain as investors weigh quality dividend ETF
The MSCI ACWI ex-US index is up 11.5% through July 22, but AI and growth-heavy exposure in some ETFs is prompting interest in a quality and dividend growth approach.
International stocks are posting strong gains this year, but some investors are looking past headline performance as AI-adjacent and technology names from emerging markets have become outsized contributors, according to ETF Trends as syndicated by Yahoo Finance. As of July 22, the MSCI ACWI ex-US Investable Market Index, which covers developed and emerging equities, was up 11.5%.
The article highlights that market exposure within certain “diversified” international ETFs can be narrower than expected, with technology and AI-adjacent growth helping drive performance. It points to South Korea and Taiwan as examples of countries that can loom large in some international fund holdings.
As a potential complement to growth-heavy portfolios, the piece points to the ALPS O'Shares International Developed Quality Dividend ETF, OEFA. It says the ETF emphasizes quality characteristics and dividend growth, provides exposure to stocks from 15 countries, and that no single holding has a weight above 4.8%.
Morningstar’s Dan Lefkovitz is cited saying developed-market equities outside the US tend to resemble the US market less than emerging-market counterparts, noting that developed markets are more diffuse and have financial services as their largest sector. The article also frames OEFA as a style diversifier at a time when concentration in the US has risen sharply and some international ETFs have shifted toward growth.